Exam 7: Determining Costs, Budget and Earned Value

The percentage complete estimate for a work package is subjective and requires an underestimated guess compared to the scope of the work package.

Equipment costs in the project costs estimate are for equipment

When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of:

The for the entire project or each work package provides a baseline against which actual cost and work performance can be compared at any time during the project.

Calculate the forecasted cost at completion if the total budgeted cost is R150 000, the cumulative actual cost is R100 000, and the cumulative earned value is R120 000.

The worst scenario from the contractor's point of view is to have the customer make only one payment at the end of the project.

A method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far.If the cost performance index is greater than 1.0, then

The project cost estimate is allocated to

The key to effective cost control is to analyse cost performance on a regular and timely basis.